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tv   Power Lunch  CNBC  April 9, 2013 1:00pm-2:00pm EDT

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the debate. >> el owe it all to steve. >> final trades, speaking of steve. >> you're up first. >> i still think the stock is very -- >> murph? >> long gs, goldman sachs. >> doc, what do you got? >> tj maxx. >> hologic. "power lunch" starts now. have a great rest of the day. we have a dale full of breaking news. many of the biggest names on wall street, and cnbc is covering it for you, including those names, bill ackman as ron johnson exits at j.c. penney, ackman on the board there, the largest shareholder at j.c. penney right now. skechers was halted earlier
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today. it was halted for a good time, because kpmg -- out in l.a. is suspected in eighting in an insider trading scheme. that stock is down right now by about 10%. have investors lost confidence? you can say that again. we asked it about presidents, we're going to ask and answer today about j.c. penney. it begins right now with simon. >> thank you, tyler. the stock is down big today after the resignation, probably the sacking of ron johnson more accurate. scott wapner wrote the story last night. then plummeted when the company announced that the former ceo
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mike ullman would return to the hot seat. during that time the stock dropped 15%, but don't forget that almost everybody, all issues were down from 2007 to 2009. right now, you can see the stock trades at 14.19, a whopping loss on the day. since johnson took over the company, the stock is down. what must he do immediately to stabilize, to right the ship. >> but first to cnbc's retail reporter courtney reagan, during his tenure, johnson was betting his own money on the company, betting effectively on his own success, so courtney, how much has mr. johnson lost? >> oh, simon shareholders are certainly not the only ones pays the price, while shares have lost 51% during johnson's 17 months at ceo, it's cost him
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dearly as well. with the help of executive compensation data firm, during his time at j.c. penney, the total take hoff cash, 2.1 million, the total other comp nearly 402,000, total value, he holds outright, about 14.2 million, making his total take-home pay in 2011 and 2012, 16.7 million, but simon, then there's the 50 million in warrants that johnson bought, with a strike price of 29.92, that cannot be exercised until 2017. currently very out of the money, so assuming that no value is realized on those warrants, johnson effectively lost 33.3 million in his time as ceo. we do know that the interim ceo, mr. mike ullman will be making $1 million as his base pay. tyler, back to you. >> court, thank you very much.
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what does the returns ceo, mr. ullman, the million dollar a year man have to do in the next 100 days to fix j.c. penney? the timer is ticking. george berard is mcing director, and professor charles ellison, the center for corporate governance, and simon also joins us as well. professor ellison, let me start with you. what does he need to do in 100 days? >> he's got to stabilize the situation, who in the inner team stays, who goes, and how does he stabilize. it's a very problematic event, and he has to make sure that critical people stay and those who should go go. he has a tough job ahead of him. the stabilization is almost as hard as redoing a company. mr. pratt, mr. ellison says stabilization. is that going to fix things or not?
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>> well, the answer is not, and i think stabilizing it is half the game, but the other game is, he needs to get ready to get rid of this company. this company has no reason to exist anymore, and he -- the new ceo needs a dual track, yes stabilizing, but at the same time getting ready to sell what's left of the company to whoever will buy it. >> what is left of the company, mr. brad? is it the real estate? what is it? >> i think it's the pattern of behaviors. >> they don't need j.c. penney. they're just going there out of habit. so the real estate and the habit can be transferred, but their brand is gone.
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>> simon, jump in here, professor ellison you're saying two contradictory things. on the one hand you say stabilize it, but your colleague there says maybe it's up for sale. i know people who supply j.c. penney's, they're finding it incredibly difficult to get financing to execute for orders on j.c. penney. mr. ellison, how do you convince everybody that this is a solid ship with enough money and they can still deal with it? >> that's why you bring back the old established ceo to stabilize the situation. people in the industry know him, comfortable with him, he was there for a long time, he was well known. that's how you stabilize. this board has done precisely what they should have done. once they decided it was time for the ceo to go. >> let me get to the question of
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the board, and you're one of the leading experts in the country about corporate governance. it would seem to me to be a rather severe indictment of the board, some of whom those individuals have changed since mr. ullman was ceo. you bring in mr. johnson to revamp the company and fix the things that the board must have thought were wrong under mr. ullman's tenure, and now you decide that the guy you brought in is not working, so you bring back the old guy. is this a board that's truly successful and working? >> this raises a lot of question, first of all, why did you get rid of number one? number two, why didn't you promote internally? and then i think they were wise to bring the old ceo back in to stabilize him. he's brought in to stabilize the situation. the bigger question initially was why did they get rid of the first guy and bring this person
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in to begin with. people sometimes make mistakes. was it an honest mistake? probably. should they have gone outside? that's a good question. i think they fell victim to the old superstar theory if you go out and find a superstar, all will be well. the superstars typically don't do well when they come from somewhere else. they may be great at one company, not great at another. this is what happened here. >> mr. bradley, let me turn back to you, you know, american retailing in recent decades has been littered with lots of companies, maybe none quite as nationally prominent and long-standing, but for company that is have gone out of the business. and a whole host of them, why do we hold on to sentimentally to stores like j.c. penney? >> i do think it's out of habit. i think the fundamental question is, what are do you do as a board or ceo or a leader when
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the reason for your existence ceases to exist? and in some of the examples you cited, and in j.c. penney's example, there's no reason for this company to exist anymore. the board's problem was not in finds the superstar. ron johnson's fundamental mistake was not in going to everyday low pricing, was not in trying to bring in the boutiques. the fundamental mistake was in taking the job, because there is no path to success for j.c. penney, its reason to exist no longer exists. >> if there's anything i remember here, it's we'll have other places to buy underwear now. thank you very much. >> absolutely. >> professor, great to be with you. how often do you shop at j.c. penney? cast your vote, we will have the results later on power. simon? tyler, we have breaking news in the bond market right now. three-year notes for auction. rick has the details.
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what's the demand like, rick? >> it was c-minus. 32 billion three-year nose. now for the not so good. weakest in a year and a half, the indirects and directs were both a bit light. the demand was very light. so we look at ten-year notes followed by 30-year bonds on thursday. simon, back to you. >> thank you, rick. more controversy surrounding herbalife. trading was suspended this morning on news that -- kpmg said it fired a senior partner in charge of audit at its l.a. office for providing inside information about its clients to someone who used that information for stock trading.
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in other words, insider trading. the stock has been a battleground as regular viewers will be aware between bill ackman and carl icahn, a source telling cnbc the resignation has nothing to do with either of those two parties, tyler. all right. thank you very much. simon, let's bring in kate kelly. it's been a bad, bad bet for ackman in j.c. penney. how overall is hess doing with his fund pershing square. >> surprisingly the fund is actually doing pretty well, much more than 6% and hold about 12.4 billion in assets under management if you look at their top holdings, canadian pacific railway and png are two big winners. looking through the relatively small portfolio, because he's an activist investor, most stocks are up.
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we soo action weakness with mattson, but the big losers, of course, is j.c. penney, with the huge negative reaction to the ousting of ron johnson. so, you know, ackman, it's still performing well, and it remains unclear how it will affect his current quarter. her alive, it will be interesting to see how the kpmg situation plays out. i would say it's probably a net neutral for the company. and investors are reacting as such. >> nothing to do with either ackman or icahn. it's apparently a rogue employ decree of kpmg. >> exactly. my only curiosity if the new auditor takes a fresh look, will it get a rubber stamp or raise any questions about the financials because of course the
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financials, the accounting, the way they structure their business and describe it to investors, has been under scrutiny with ackman in particular, we know he's short to the tune of some $1 million, so any all tore who raises questions would be beneficial to him. >> kate kelley spent the whole morning scripted that. >> not a bit of it was spontaneous. >> thanks, kate. another stock held this morning. skechers. the company announcing the resignation of kpmg as its auditor as well. there's the connection. steve cohen will be watching that stock closely. he's got 5.1% of that country, and all the uggs he needs. i hope his feet are warm. they are currently trading at 2103, almost 4% up, this on
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rumors that it has hired goldman sachs to explore strategic alternatives, the famous phrase. if you recall, carl icahn -- he disclosed a 9% stake in the speech recognition software development earlier this month, spurring speculation the company might well put itself up for sale. simon? the full focus, tyler, is now the best-selling car in the world, boosted by sales in china. ford's stock up about 27% over the past six months, currently trading at 12.86. it's gain on the day as the market rises. phil lebeau is in chicago. phil, for years it was the toyota corolla that was number one. what happened? >> well, a couple things, first of all, you talk about how they've had strength in china for ford and the focus, that's been a determining factor over the last 12 months to 15 months in china, compared for the corolla, which is still sold in china, but remember toyota has
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had a number of problems when you factor in the dispute between china in japan over territories. that really turned off toyota sales and all the japanese brands in china. that was a factor. then you have that the focus has been doing well in the u.s. in europe it's a bit of a wash, but doing a little better than toyota is doing in europe. in i've. >> no, in fact their sales -- remember, forte way late to the game in china. they've been making tremendous progress over the last five or six years. they're well beengine gm and volkswagen. now, forte will eventually get up over a million, but they're a long ways from thativities phil,
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thank you very much. all right, simon, that focus is a nice little car. shamu is about to swim onto wall street. he or she could bring a lot of money. also a new way to shoot down enemy aircraft for $1. $1 is all it costs. more "power lunch" coming up.
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the activist investor to dell issued an oletter say the proxy statement is flawed, providing no justification for going private with it's $24.4 billion $13.65 a share deal with founder michael dell. it's urging the committee to act in the best interests of all dell shareholders. stock trading up 1423. this really is a case of the worm that turned on the investor, tiely. >> absolutely. simon. last week eamon javers, on policy changes that had been leaked to a wall street political intelligence firm down in d.c. it moved the stocks. it was a case where insiders had access to information, and they profited from it. how the senate financial committee might change the rules of the game. eamon? >> it's one of the trickiest questions here in washington facing investors. when is advanced information
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about something that congress or government regulators might do actually inside information in terms of trading on stocks that will move as a result of that news? last week "wall street journal" first reported an incident involves insurance stocks that moved based on a proposed change at the centers for medicare and medicaid services. today senator chuck grassley was grilling the proposed new head of that entity called cms. he said he hopes that she understands these kinds of leaks are her responsibility. take a look at the exchange. >> it is wrong and quite possibly illegal. i hope you agree that ultimately you're responsible. what are you going to do to hold somebody accountable for this leak? >> cms takes all of this seriously. we did receive your letter. we have initiated an internal review. and it will be extensive. >> now, simon, marilyn taverner
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also told the senate today that she's invited the ig, the inspector general of cms to get involved in this investigation as well. we've got no details yet, obviously, of what is an investigation in its very early stages here, but this is going to be an answer that might impact a lot of investors who are trying to mine washington for information. as the government has gotten more heavily involved, the information that starts here is increasingly moving markets around the world, simon. >> yet the pressure is clearly on eamon in washington. thank you. the u.s. navy is about to deploy a knew weapon. it can take out enemy aircraft with the cost of $1. how are they doing it? and who is behind it? will it change the face of air defense forever? if there's one piece of financial advice, who better to get it from than the oracle of omaha. get ready to step into warren buffett's lecture hall.
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how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed: the official retirement age. ♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪ we're looking at interesting levels down here on the floor of the new york stock exchange. we just hit a fresh all-time high of 9 dow 14,692, just edging back. we also just regained the record close territory we had last tuesday on the s&p 500. 1570.4, now eyes the s&p
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all-time high of 1576. we haven't been there since october of 2007. let's have a look at the top of the dow. it's microsoft. that's a big move. walmart, and caterpillar, ty. a tremendous number of stocks on a list i saw, but all-time highs, a very vast number of those. this, perhaps forever, a video of a u.s. navy testing a laser that can shoot hostile boats out of the sea and take down enemy planes and drones in the air. no ammo needed, just electricity. it costs just $1 to point, click and fire. it basically sears right through the skin of the aircraft. it's known as the lws, the laser weapons system. analysts say it will be helpful
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to combat multiple targets at the same time, including a large amount of smaller, faster boats that iran has threatened to use against u.s. naval ships in the persian gulf region. >> pretty star trek. warren buffett has advice. he was asked by our partners at yahoo finance the number one thing that parents should teach their children. warren buffett said teach them not to spend more than they have, save for the unexpected, and never borrow unless you have a plan to pay it back. and wear sunscreen -- no, no, i'm just joking. good advice for all of us, no matter how old we are. speaking of which, a market flash from josh. >> the street here is beginning to react to the news that herbalife auditor kpmg has resigned. a well-known bull on the stock now downgrading that share, those stocks to neutral from buy.
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its prospects, historic performance. and as a stock, he says it will be a ser problem to be out of compliance, though no fault of their own, potential breaches -- you can see herbalife took a sharp turn, down about 3%. tyler, back to you. >> josh limit ton, thank you. is shamu about to make a flash in the stock market? and a make homebuilder is planning a big ipo. details on both those stories when we come back. plus the economy is in recoveries. why is the american worker seemingly at a breaking point under such stress. stick around, we'll tell you. about insurance. because what you don't know can hurt you. what if you didn't know that boxes by the curb... make you a target for thieves? or that dog bites account for a third of all home liability claims? what if you didn't know that one in seven drivers is uninsured?
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gold prices closing right now. and up about $15 on the session. we're seeing some momentum across the board in the metals complex. the fact that we're looking at a strength in the euro, a weakness in the dollar certainly a factor, and we've seen some seriously depressed prices along the metals board for the past week or so. some trailers say what we're
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seeing is a short-covering rally. that's something evidence in what we're seeing in the copper market as well. copper has been heavily short, a lot of big firms talking about shorting copper, and yet some inflation data. some traders say that's what's been supportive of copper. also looking at where gold is so far this year. despied the up tick, we've seen gold under pressure for much of 12013. deutsche bank the latest to come out, saying that returns in the gold market may actually be on course for the worth actual performance since 20 on 00. they have lowered the forecast to 16.37 an ounce. simon, back to you. >> the big rotation into equities. sharon, thank you. in the last few minutes, hitting fresh all-time highs. welcome to c innocence. and the s&p is back at levels we have not seen, so raising the gains from the employment report.
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implgts this is the deepist into the year without one. right near on the session highs, and right around 11 a.m., the etf that tracks the s&p volume, ticked up as we pushed through yesterday's highs. sectorwise, it looks like more of a risk-on type of day. but not the case today. you look at commodities from the fun perspective. steel, global copper miners, all up basically 3.5% and above the slx, the best dayce january
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2. the gdx, the best day since september, so sharon touched on gold, but the stocks and the funds and the commodity space are just ripping today. >> thank you very much. we also have tech doing particularly well. microsoft up almost four. let's bring in seema mody for more. >> simon, the nasdaq definitely picking up d. the nasdaq composite trading at session highs, up about 20 points on the day. as for the reason -- traders pointing to the upbeat data out of china. in terms of the big movers today, some of the old-school tech names getting a bid. shares of microsoft, intel and oracle, and even biotech, one of those risk-on sectors, posting notable gains, a lot of bullive commentary after it submitted a new drug application to the fda for its new hepatitis-c treatment, also from the
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med-tech space. check out life technologies, which specializes in dna sequencing. it hit a new 5246 week high some are looking to make a bid on the company. it's had a nice run year to date. simon, back to you. seema, let me mention on where we are on the fed, the market rallies despite the fact that james bullard speaking with our senior economics reporter steve liesman early today on "squawk box" said he is a member of the fomc that would be willing to scale back the massive bond buying, which you would be aware -- take a listen. >> you can't adjust up or down, but most likely the economy will continue to improve and will be in a position where we can slowly ratchet down the pace of purchases. >> also the first quarter economic growth looks like it will be stronger than the fed
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expected at the beginning of january. okay. let's go to chicago. rick santelli for all the action at the cme? rick, sir? >> well all know we had a three-year action that didn't go particularly well. dealers took almost 65% of the auction. we're close to unchanked. here's what may be driving markets. look at the spread. now under 50. many say traders, that this is the trade, being long u.s., short bunds, it's all about the carrying trade returning with the weak yen. it seems as though the pressure is off. look at the year today, the euro versus the dollar. it's now ready to overtake 131. on the pound versus dollar, it's also righted itself since the bank of england meeting last thursday, as many of the funding
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issues and auctions, at least for now, i'm toffee abated. simon, back to. >> thank you very much, rick. >> over to you, a homebuilder that's made some savvy bets is about to go public. so is a whale. first inevitably a whale of a story. >> the puns get worse and worse. shamu is hitting the road. seaworld is planning a $540 million ipo. the orlando-based theme park operator plans to sell 20 million shares at the current level, it looks to be among the top five biggest ipos in the u.s. this year. seaworld owns 11 parks, it has 67,000 animals. they bought the company in 2009 for 2.3 billion. it will remain the majority shareholder in january, though, take a look at this pictures, all interested parties.
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plotting out the deal, all hands on deck. it looks like some of those investment bankers might be lost there. >> save the whale. here we go. and that other big ipo set to price taylor morrison, diana olick is in washington with the pricing and the challenges that one faces. >> hi, tyler. not a whale, but analysts are calling this a strong offering. taylor morrison is not a start up, but a company already taking advantage with a very solid pipeline. the scottsdale, arizona builders plans to sell 23.8 billion class a shares for between $20 and $22 a share, making the deal worth as much as with sales and orders sup 46% from 2011. taylor morrison builds in arizona, california, florida, texas and colorado, as well as having an arm in ontario.
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the average home price is $364,000, so a step above the starters, but not quite the luxury -- not entry level, not active adult, and not quite luxury. private equity firms bought the company back in to 11, and taylor morrison says in the filing it intends to use approximately dlsh plus 7 million of cash on hand to buy back shares from tpg and oak tree. analyst alex barron from texas-based housing research center believes that revenues will be up, with an estimated book value of 12.50 a share after the ipo and repurchase of shares from tpg and oak tree. this is only the second homebuilder ipo since 2004. california-based tripoint went public back in january at a share price of $17. that was $1 above the marketed price. plenty more online. simon? a lot of ipos recently. thank you very much, diana,
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there in washington. ahead on the program, the nfl butting heads in court with some of its former players, worth millions at stake. and bill gross auctioning off his rare stamp collection for big bucks. we'll tell you for how much and where the money is going when "power lunch" returns. stay tuned to cnbc.
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serious investors are choosing fidelity. now get 200 free trades when you open an account. boy, this is a case that so many people are watching. the nfl butting heads with thousands of its retirees with a court case. at issue -- whether to grant the nfl's request to dismiss more than 200 cases brought by more than 4,000 football players who have accused the league of hiding data about the dangers of head injuries. brian schactman has the details. >> this one may be in federal district court, but this morning's proceedings had a
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decided big-time feel. potential billions in damages, the lawyers on both sides are supreme court veterans, as tyler said, more than 4,000 former players, claiming intentional misrepresentation, negligence and fraud. these are heavy words, when it comes to awareness of the risks involves concussions. they even clade they glorified violence and the case claims the nfl was aware of the risk for decades. today's hearing lasted a little less than an hour. it was about whether the federal court has the authority to hear it. the league contends this falls under the collective bargaining agreement, should not be decided if a courtroom. the plaintiffs obviously disagreed. the nfl's lead attorney says that the union is also responsible for the cba, which means they share responsibility with this issue. the plaintiffs argue the league cannot be immune because of the cba. the judge isn't expected to decide whether to dismiss the
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case for a few weeks, some say even a couple months. you can guarantee there will be appeals. retired players want the money, the league wants this to go away. if it looks like it would drag on for years, some feel a settlement is what might be in the best interest of both sides. in some way it feels like a tobacco-style situations where the dollars might dwarf the situation. >> huge implications for the future. >> some feel you take with this mothers across the country with maybe their kids not wanting to play the most profitable popular league in this country might have existential problems, which is a fascinating thing though think about. josh? >> simon, you have to check on the first solar, it's absolutely whipping higher. let me give you the numbers. guidance for 2013 sales, 3.8 to 4 billion. the street was looking for 3.1
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billion. 2013 eps guidance, 4 to 425, consensus was 351. no surprise you can see these shares absolutely ripping higher, fslr up 27%. simon, back to you. >> power of the short squeeze, josh. thank you very much. how does your retirement tack up against what federal employees get? the federal employees retirement system was created in 1987 to cover all federal employees, including congress. here's how it worked for congress before changes kicked in this year. social security, the system paid the standard payroll tax. pension, congress contributed 1.3% of their salary, a 401(k)-style plan with a 5% match, double the match of the average american worker. the return? well, congress and federal employees got roughly $3 back for every 1 that they put in.
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arguably if it was an investment, it would be a 300% return. the average american workers gets about $1.5 for every dollar, a 50% return. accord to merkatis center, things are changing, starting this year federal hires, as well as those with less than five years of service will have to pay more into their plans, saving the rest of us taxpayers almost $15 billion in the next 11 years. tyler. >> thank you very much, simon. that baseball card we showed you on thursday went for a record $2.1 million at auction over the weekend. it is not, however, the only alternate investment that is luke ra difficult. bill gross, the founder and cochief investment officers of pimco, the big bond house, is putting his rare stamp collection up for auction. the proceeds from the auction, which begin today, will go to
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charity. our wealth editor robert frank now has more. hi, robert. >> hey, tyler, a huge trading day for bill gross. we're talking about stamps, about 300 lots going up for sale today. theablying is still going on. it's going to go on until 5:00 p.m. some lots fetching more than twice the estimates. a lot just went for $62,000 for a single lot. some of that is because bill gross is such a smart collector. people want to buy from him, but it's also because stamps have been an incredible investment over the past ten years, yielding 216%, 72% over five years, better than art, better than wine, better than even stocks. stamps have been a very good investment. now what's being sold today are many of the first stamps ever issued by the postal service. again some of these are expected to fetch moran that are dln 50,000.
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that makes bill gross the top fh fill lat list. the interest rates on student loans are about to double later this year. should the government be profiting from their financial burden? that's part of our power rundown, when we return.
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the question of the day -- how often do you shop at j.c. penney. 2% said once a week. 12% say once a month. 30% say once a year. half of you say never. there you go. >> that may be the problem, tyler. headline time. united airlines plans to begin throwing dreamliners at the end of next month, may 31st on the denver/houston route, five days sooner than had previously been expected. mastercard is lower on news it's under investigation over the level of fees tourists are charged when making purchases there. st. jude falling after they downgraded the medical device maker on the expectation it will underperform its peers in the future, tyler. >> simon, thank you simon ask
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going to rejoin us. cindy berman is with us as with you. is the interest rates will double to 6.8% from 3.4%. should the federal government be doing this, jacking up interest rates, many of the debts are in arrears already at a time when interest rates are so low? >> the simple trust is if you raise the price of education, less people are going to buy it and get themselves educated at a time we desperately need to raise the value of the workforce so they can keep their jobs in the future and pay more tax toss relieve the burden on everybody else. the short answer is no, no, no. >> cindy, we've been down this road before with the student loan rates. do you think the outcome will be any different this time? >> i really don't think we are. frankly, you know, we find money in the budget for every bacon farmer and bridge to nowhere. just find the money, get it done. i'm tired of this. i don't even want to spend the
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money for congress to be debating it. get it done. >> simon, cindy stay there. april is stress awareness month. i'll bet you didn't know that. i've been stressing over that all day. what percentage of your co-workers are at their breaking point? we'll temperature you when we return. at a dry cleaner, we replaced people with a machine. what? customers didn't like it. so why do banks do it? hello? hello?! if your bank doesn't let you talk to a real person 24/7, you need an ally. hello? ally bank. your money needs an ally. [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪ [ male announcer ] when the world moves...
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there you see the markets right now, the 83-point gain that puts the industrials well above the closing all-time high. the s&p also above, if i'm recalling correctly the 1570 number, which was set of course just last week. if anybody wants to correct me, please do. jumping back into the power rundown, it is stress awareness month. according to a new survey 83% of american workers say they're stressed out by at least one thing at work. that's up from 73% last year. why are we so stressed, cindy? >> i'm so stressed out, tyler. even talking about it stresses me out. it's important to run a lean ship, but we're starting to dig out, starting to put too much burden on our workers. what's going to happen is companies will start to lose good workers, so i think we need to start thinking about that.
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emplgts one of the things i've learn coming to new york, it's all about perception. go find me a bucket of stress. it doesn't exist. it is what it is, accept it until you're able to change it. don't have the fear, don't stress out, it won't get you anywhere. >> i basically agree with that. >> it's easier said than done. >> they are not in their dream job, 79%, if given a chance, 83% would jump at the opportunity. >> i was struck with kurt warner's comments, it's never too late to change your life. lose the fear, lose the anger, just focus on that. urchlts i do something i really
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enjoy doing. >> we all are where we work. you feel lucky? >> of course, i'm living the life. it's not surprising to me. how many george clonies and derek jeters can there be? it's not surprising. it's hard to say following your dreams, because money has to factor in. so i think you have to work on finding a balance. >> annual scrips national spelling bee, the kids will now have to know the definitions of the words by taking multiple choice rvocabulary tests. it's not just a spelling competition anymore, simon. >> it's not, but i'm not sure that the organizers have fully got behind it, because that new part of the test is taken in private rooms, not on the televised portion of the
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championship, which makes me think they have not actually got all their ducks in a row. >> cindy, any thoughts? >> i would rather have them take a multiple tests behind the scenes. we did so much memorizing in school, how much did we absorb of whattmeant? we've got to do everybody we can to make our kids smarter. >> it's a good thing. sisogy, a good work, look it up, it's astronomical. we'll be right back on what's stacking up to be a record breaking day. [ all ] fort benning, georgia, in 1999. [ male announcer ] usaa auto insurance is often handed down from generation to generation because it offers a superior level of protection and because usaa's commitment to serve the military, veterans, and their families is without equal. begin your legacy. get an auto-insurance quote.
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